Lender's guide to the securitization of mutual fund fees
As mutual funds have become one of Wall Street's hottest businesses, the securitization of mutual fund fees has become more common. Banks and other commercial lenders need to understand the structure of these transactions and familiarize themselves with the related legal issues. In the typical...
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Veröffentlicht in: | The Banking law journal 1997-11, Vol.114 (10), p.896 |
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Format: | Artikel |
Sprache: | eng |
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Online-Zugang: | Volltext |
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Zusammenfassung: | As mutual funds have become one of Wall Street's hottest businesses, the securitization of mutual fund fees has become more common. Banks and other commercial lenders need to understand the structure of these transactions and familiarize themselves with the related legal issues. In the typical mutual fund fee securitization transaction, a bank purchases receivables representing Rule 12b-1 and contingent deferred sales charges from distributors of various mutual funds pursuant to separate receivables purchase agreements. The seller then transfers the receivables to a trust in exchange for certificates and the residual interest in the trust, pursuant to a pooling and service agreement among the seller, a trustee, and a master servicer. The certificates are sold to investors pursuant to an underwriting agreement or a placement agency agreement. |
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ISSN: | 0005-5506 2381-3512 |